netflix - All posts tagged netflix

Sony’s trying to leverage the huge installed base of PlayStations here in the U.S. as more than 25 million U.S. households have a Playstation 3 in them and the millions that will be adding a PlayStation 4 to their living rooms over the next year or two. For comparison, Netflix has 36 million subscribers in the U.S.

Stocks like Netflix continue to get pounded on no news, though I suppose the headlines about how Apple’s trying to bribe Comcast to treat Apple’s TV services as unfettered, is contributing to Netflix’s downswing here. Clearly, if Netflix is going to have to spend billions trying to get the last mile Internet providers to keep from throttling Netflix’s TV services, it’s going to hurt long-term earnings for the company. Not only that, but Netflix certainly doesn’t have the capital that an Apple, Microsoft and Google have to pay for such a scam. Imagine what this means down the road for a Pandora, Yelp, and others too.

I think Netflix should be trying to get cable stations to broadcast the cable station’s daily feed on Netflix instead in addition to today’s news of trying to get cable companies to offer Netflix. I think Netflix is headed much much higher in coming years IF IF IF they company’s management, namely the CEO, whom I’ve interviewed and met several times and thought very highly of until the recent debacles he’s created for the company, don’t mess it up. I’m not convinced enough that management won’t keep screwing things up to get me into the stock. As a short-term trade measured in days, I’d be a buyer right now but again, I’m not personally pulling that trigger.

Europe’s Economy is Falling Apart – Once again, I’ll replay this public service announcement for traders — if you were panicked at the lows when the media and markets were too, right now when the media and markets are breathing a sigh of relief and have decided that the latest socialism for the elite programs they’ve installed have only forestalled the inevitable restructuring of their banking assets and system into something hopefully more capitalistic/law-abiding, that you should be panicking. These programs are going to hurt their economies, just like the ongoing bank bailouts/corruption-look-away system we have in this country obviously continues to hurt our own economy.

I had this email dialogue with a friend of mine, a guy who helped build up one of those Silicon Valley companies to the point that it became so powerful as to be investigated by anti-monopoly departments around the world. One of the smartest guys I know and one of the most tuned-in tech guys I know.

As I keep reminding you guys though, do NOT bet more than you can afford to lose on these types of short-term catalyst trading ideas — the trade in which you think you’ve got it all figured out, will be the one that goes against you. So don’t kid yourself that you can game this stuff successfully on any individual trade like this — it’s all about getting more right than wrong over a whole bunch of these types of trades over a long period of time. And making sure you’re betting so that you get paid when you are right.

Early Look: Italy Downgrade Priced In – I’d been mocked when I’d repeatedly mocked the unimportance of the Italy/Greece-contagion fears. Turns out, as the headline reads, that the markets had indeed already priced in the Italy/Greece-contagion fears. Indeed, it had more than than priced it in back during those August panics when we’d been buying tech common and calls. Take a look at a chart of the SPY, the DIA or especially the QQQ and you’ll see some very nice rallies.

I know a few folks over at Netflix, including Reed Hastings, the CEO and author of this strangely apologetic but still arrogant “reflection” and I can’t tell you what the heck he’s doing with this. I didn’t think the DVD and streaming pricing changes that Netflix put through a few months ago was that big of a deal. But if he thinks the revolt from the customers over this issue is about him needing to communicate better and not about the pricing and the lack of decent stream-able content on the site…then he’s got another thing coming.

About The Cody Word

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com He is the founder of WallStreetAll-Stars.com and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and is on the University of New Mexico Alumni Board. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. Cody, a former hedge fund manager, and his stock picks and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.